EDA Minutes 08-10-2016MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, August 10th, 2016
Mississippi Room, Monticello Community Center
Present: Bill Demeules, Bill Tapper, Steve Johnson, Tracy Hinz, James Davidson, Tom Perrault,
and Lloyd Hilgart
Absent: None
Others: Angela Schumann, Jim Thares, Jacob Thunander, Wayne Oberg, and Tammy Omdal
1. Call to Order
Bill Demeules called the meeting to order at 6:00 p.m.
2. Roll Call
3. Approve Meeting Minutes
a. Regular Meeting — July 13t", 2016
PERRAULT MOVED TO APPROVE THE JULY 13TH, 2016 REGULAR MEETING
MINUTES WITH CORRECTIONS NOTED. TAPPER SECONDED THE MOTION.
MOTION CARRIED 7 -0.
4. Consideration of additional agenda items
Tapper proposed switching the order of agenda items 10 and 11. All members were in
accordance with the change.
5. Consideration of approving payment of bills
Demeules questioned approving bills for office supplies. Angela Schumann stated that
the finance department is working towards coding expenses to their respective
department.
Tapper questioned an invoice from WSB of whether this was the final bill. Jim Thares
confirmed this was the final bill.
HINZ MOVED TO APPROVE PAYMENT OF BILLS THROUGH JULY 31sT, 2016.
HILGART SECONDED THE MOTION. MOTION CARRIED 7 -0.
6. Public Hearing — Sale of 413 — 4' Street West & Consideration of Adoption of
Resolution 2016 -006 Authorizing Sale and Entering into Purchase and
Redevelopment Agreement with Taylor Holdings, LLC.
Demeules opened the public hearing. Hearing no comments, Demeules closed the public
hearing.
Perrault questioned the acceptance deadline. Thares stated that the document lists August
10th, 2016 by 10 pm as the deadline, but could be extended to August 11"', 2016.
Perrault was concerned with having no windows on the left elevation. Tim Taylor, Taylor
Holdings, LLC, stated that he would be open to installing windows on the west side of
the building.
TAPPER MOVED TO ADOPT RESOLUTION NO. EDA- 2016 -006 APPROVING A
PURCHASE AND DEVELOPMENT CONTRACT BETWEEN THE CITY OF
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY AND TIM TAYLOR,
TAYLOR HOLDINGS, LLC AND CONVEYANCE OF THE LOT IN CONNECTION
WITH THE CONTRACT. DAVIDSON SECONDED THE MOTION. MOTION
CARRIED 7 -0.
7. Public Hearing — Sale of 349 West Broadway & Consideration of Adoption of
Resolution 2016 -007 Authorizing Sale and Entering into Purchase and
Redevelopment Agreement with Hallie Leffmgwell (We Thrive Fitness, LLC)
Demeules opened the public hearing. Hearing no comments, Demeules closed the public
hearing.
Perrault questioned the language for Item 1.04 which states the development has no
relationship to the City's comprehensive plan. Thares stated this language section was
added due to a lack of a quorum during the regular meeting of the Planning Commission
wherein they could not review the plan for its consistence with the comprehensive plan.
It is an acceptable workaround according to the EDA attorney
HINZ MOVED TO ADOPT RESOLUTION NO. EDA- 2016 -007 APPROVING A
PURCHASE AND DEVELOPMENT CONTRACT BETWEEN THE CITY OF
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY AND HALLIE
LEFFINGWELL (WE THRIVE FITNESS, LLC) AND CONVEYANCE OF THE LOT
IN CONNECTION WITH THE CONTRACT. TAPPER SECONDED THE MOTION.
MOTION CARRIED 7 -0.
8. Consideration of Approval of 2016 TIF Management Plan, Tammy Omdal,
Northland Securities
Tammy Omdal explained that the City of Monticello first completed a TIF Management
Plan in 2009 and was updated in 2012 and 2016. The document is meant to inform the
EDA's decision making as it relates to TIF and to assist staff with the ongoing
administration of the TIF districts. Omdal gave a brief overview of overall tax increment
in the City of Monticello and in each of the districts.
Currently, the City of Monticello contains ten TIF districts. There are an additional two
districts that are decertified, but have funds remaining. As of 12/31/2015, a fund balance
of $742,187 was recorded of all TIF districts.
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Hilgart questioned where funds come from to repay a negative fund balance in the
economic development TIF districts. Omdal stated that where there is a negative fund,
the EDA general fund would cover those expenses, which is decided by the EDA when
issuing an inter -fund loan.
Perrault noted that for District 1 -20 (Prairie West). The report identifies 10 single family
housing units, but he believed there are 30. Omdal stated that it could have been a
carryover from the 2009 report and would consult with City Staff to update if incorrect.
Johnson asked if there was a minimum assessment in the development agreement for 1-
38 (Walker) to prevent negative fund balances. Omdal stated she would look into this and
confirm to the EDA.
TAPPER MOVED TO ACCEPT THE 2016 TIF MANAGEMENT PLAN PREPARED
BY NORTHLAND SECURITIES. HILGART SECONDED THE MOTION. MOTION
CARRIED 7 -0.
MEMBER PERRAULT LEFT THE MEETING TO ATTEND TO OTHER CITY
BUSINESS.
9. Consideration of Adopting Resolution 2016 -00# approving Amendment to Contract
for Private Development between Masters 5t1 Avenue and the Monticello EDA
related to Tax Increment Financing District 1 -35
Jim Thares explained that the request is to expand the language in the contract for private
development to include "commercial, residential, or mixed used ". Since there were no
development plans submitted by Masters 5th Avenue with the amendment, the EDA
attorney recommends refraining from amending the TIF plan.
The EDA questioned the developer's plans for the area. Barry Fluth, Masters of 5th
Avenue stated at this time, they are still planning to build the apartment complex that was
approved by the planning commission and city council.
Angela Schumann stated that staff was uncomfortable having the attorney spend time and
money on drafting documents if this was not something the EDA wanted to consider. At
the last EDA meeting, the Commission gave authorization to move forward with the
drafting of the document. Schumann asked the EDA to consider their comfort level with
what the developer has presented and intent on building or if they would rather see
definitive development plans. Schumann stated the importance of the EDA's intent with
the developer.
Hilgart and Davidson questioned if the developer would be able to use the funds set aside
in the TIF district. Thares stated he believed that if the developer would like to access the
TIF funds set aside, the TIF plan would need to be amended to include "residential,
commercial, and /or mixed used."
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TAPPER MOVED TO DENY APPROVAL OF THE PROPOSED AMENDMENT OF
THE CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN MASTERS FIFTH
AVENUE AND THE MONTICELLO EDA AS IT RELATES TO TIF DISTRICT 1 -35.
JOHNSON SECONDED THE MOTION. MOTION FAILED 2 -4 WITH DAVIDSON,
DEMEULES, HILGART, AND HINZ IN OPPOSITION.
HINZ MOVED TO TABLE ACTION ON APPROVAL OF THE AMENDMENT TO
THE CONTRACT FOR PRIVATE REDEVELOPMENT UNTIL SUCH TIME AS THE
DEVELOPER PROVIDES PLANS FOR THE DEVELOPMENT. TAPPER
SECONDED THE MOTION. MOTION CARRIED 6 -0.
Demeules recessed the meeting at 7:22 pm. Demeules ended the recess and continued
with Item I 1 at 7:28 pm.
10. Consideration of Economic Development Assistance Contract with WSB &
Associates for lead generation and financial packaging assistance
Thares introduced the item to consider contracting with WSB & Associates to assist with
economic development marketing of the City of Monticello. The total cost of the contract
would be $8,400 for one year ($700 per month).
Demeules stated that with this contract, the EDA would have access to a long list of
organizations and partnerships. It may be more cost effective to utilize WSB as the
joiner instead of paying for individual memberships in each organization.
It was asked whether who would be present at these various meetings. Thares stated that
many of the meetings would only include WSB & Associates, but a few meetings would
include the City of Monticello.
Hinz questioned the value and benefits of attending these meetings. Thares stated that
these meetings are mostly for marketing purposes. As alternative format could be
developed with WSB & Associates to attend meetings on a case -by -case basis.
Johnson encouraged WSB & Associates to be present at the next EDA meeting to answer
any questions of the members.
JOHNSON MOVED TO TABLE ACCEPTANCE OF THE PROPOSED ECONOMIC
DEVELOPMENT ASSISTANCE SERVICES SCOPE OF WORK BETWEEN WSB &
ASSOCIATES AND THE MONTICELLO EDA FOR FURTHER RESEARCH
AND /OR DISCUSSION. TAPPER SECONDED THE MOTION. MOTION CARRIED
6 -0.
11. Consideration of Adopting Resolution EDA 2016 -00# Authorizing the Lew of A
Special Benefit Lew Pursuant To Minnesota Statutes, Section 469.033, Subdivision
6 and Approval of A Budget for Fiscal Year 2017
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Jim Thares stated the budget is fairly consistent with the presentation at the July meeting.
Wayne Oberg, Finance Director, noted that the total expenditures of $320,000 can be
spent in the direction the EDA sees fit because it is a bottom line budget.
TAPPER MOVED TO ADOPT RESOLUTION EDA — 2016 -00# APPROVING THE
2017 EDA BUDGET AND THE HRA PROPERTY TAX LEVY. HINZ SECONDED
THE MOTION. MOTION CARRIED 6 -0.
12. Consider Authorizing Industry of the Year Event Expenditures
Jim Thares stated the EDA has been funding the event since inception. The IEDC has
asked the EDA fund this year's event.
TAPPER MOVED TO APPROVE FUNDING FOR THE 2016 INDUSTRY OF THE
YEAR EVENT. HINZ SECONDED THE MOTION. MOTION CARRIED 6 -0.
13. Consideration of Outdoor Storage Standards in Otter Creek Business Park
Jim Thares reminded the EDA at the last meeting he presented information about the
discussion with a prospective business interested in development in Otter Creek Business
Park. The prospective developer would prefer consideration to allow 50 percent storage
of the principal building. Thares also mentioned that he met with the four businesses of
the park and issued a survey to gauge their interest in a specific development. A mix of
responses on the prospective business was received.
Demeules questioned the language of outdoor storage as it relates to shipping containers
and asked City Staff to reinvestigate the reason the language was excluded.
DAVIDSON MOVED TO AUTHORIZE STAFF TO CONTINUE WORKING ON
"NEXT STEPS" TASKS INCLUDING SENDING FORMAL LETTERS DESCRIBING
EXPLORATORY PROCESS TO OCCUPANTS OF OTTER CREEK BUSINESS
PARK AND ALSO "NOTICING" A COMMENT PERIOD AT NEXT EDA MEETING,
SOLICITING FEEDBACK FROM THE IEDC AS WELL AS THE CITY COUNCIL
AT ITS AUGUST 22, 2016 MEETING. TAPPER SECONDED THE MOTION.
MOTION CARRIED 6 -0.
14. Consideration of Landscaping Improvements on Block 34, 100 East Broadway site
Jim Thares stated that this intersection is a visible corner of Trunk Highway 25 and
County State Aid Highway 75. City staff is asking for consideration of enhancing the
space with landscaping. The total cost would be absorbed by the Parks Department
budget.
Hinz asked what would happen to the art if development occurred on the site, with Thares
confirming that it could be relocated.
HINZ MOVED TO AUTHORIZE LANDSCAPING IMPROVEMENTS AT THE
SOUTHEAST INTERSECTION OF TH25 /CSAH 75. TAPPER SECONDED THE
MOTION. MOTION CARRIED 6 -0.
15. Consideration of Director's Report
Jim Thares stated the Initiative Foundation would be holding its 30"' year anniversary
celebration Friday October 7, 2016 from 5:00 to 8:30 p.m. in St. Cloud at the Civic
Center and encouraged the members of the EDA to consider attending.
16. Adjourn
TAPPER MOVED TO ADJOURN THE MEETING AT 8:00 PM, DAVIDSON
SECONDED THE MOTION. MOTION CARRIED 6 -0.
Recorder: Jacob Thunander,9T—
Approved: September 141h 2016
Attest:
Jim Thares, Economic Development Manager
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